Just like how stores heavily cut prices on certain products to clear out old stock, Amazon is now doing something similar with its music download shop, where it sells a select complete album for as little as $1.99 as part of its new "MP3 Daily Deal".  On the 24th, this deal was the Police album "Synchronicity", which is still $1.99 at this time of writing and last week it had a deal on the Coldplay album "Parachutes".

One thing its new deal has now shown going by its album charts is that consumers will buy a lot of more music as downloads when the price is right.  For example, at this time of writing, this Police album is its number one selling album, which shows just how much of an influence the price has on selling albums online. 

Despite the pricing, all Amazon's music is encoded using the same MP3 format, which is compatible with all MP3 players including the complete iPod series.  As the c|net story writer mentioned, with Amazon's pricing, discounts on MP3s, iTunes library syncing and universal MP3 player compatibility, there seems to be no longer any advantage of buying music at the iTunes store, apart from trying to get rare songs that may be available on iTunes, but not on Amazon.

At least one advantage of selling music in the electronic format is there is no worry about stock running out before the sale ends, at least unless the store applies a sale fixed limit, e.g. first 1,000 sales only, etc.  On the other hand, it will mean the end of the "Stocks are limited" sale point stores love to say when trying to lure customers to grab what would usually be a limited selection of physical products on sale.